How to organize a contest, a lottery or a bonus sale in a loyalty program?

Contests, lotteries and bonus sales are an excellent tool for engaging customers and building loyalty in sales support programs because of the instant gratification and simple rules. In this article, we will discuss the key steps for organizing a successful lottery, contest or bonus sale as part of a loyalty program.

Successfully organizing this type of activity requires careful planning, creativity and consideration of participants’ expectations. What is simple is not always easy. The realization of a participant-friendly and effective lottery or contest is prior to appropriate preparations.

Here are the steps worth taking:

1. Defining the goals

   The first step is to precisely define the goals of promotion. So the main thing is to answer the question, what do we want to do – increase sales? To gain new customers? Or perhaps reward current program participants? Clearly defining the goals will help in further planning and implementation of the promotion.
   A common goal of a B2C or B2B lottery is to expand distribution channels and reach a wider range of potential customers. A lottery, contest or bonus sale can help with marketing and promotional activities, increasing awareness and demand for lottery products, which eventually leads to higher sales.
   It’s worth mentioning, by the way, that a lottery is a form of entertainment – a positive experience – and participation in it can improve the overall customer experience, leading to increased customer satisfaction and brand loyalty, which can also translate into improved sales.

2. Understanding the target group

   Accurately identifying the target group is the key element of success. Learning about the preferences, buying habits and expectations of the participants will allow you to tailor the promotion to their needs, which will increase its attractiveness and thus positively influence customer engagement. Questionnaire research (surveys, polls) or analysis of data held in the program, such as shopping cart and demographic data, can be helpful in identifying the target group. Using the information you have, you can proceed to create models aimed at visualizing and understanding consumer behavior and the processes that accompany their decision-making. One approach to such models is personae, or a fictional user profile. The persona should include information such as demographics, goals and needs, frustrations.

3. Choice of the form of promotion

   The third step is to choose the right form of promotion. Contest, lottery, bonus sale or a combination of them – the decision on what to opt for should always be related to the purpose of the promotion and the expectations of the target group.
   For B2C activities, various advertising channels can be used to promote lottery games and special drawings, such as television, radio, traditional media, online platforms or social media. In our experience, point-of-sale (POS) materials such as posters, banners and displays are also effective. They attract consumers’ attention and encourage them to buy the lottery tickets. However, it is important that they are located in those retail outlets where lottery tickets are sold. In order to reach target audiences online and engage them with the brand, it is also worth taking advantage of the opportunities provided by email campaigns, as well as SEO activities.
   In the other hand, contests, promotions, B2B lotteries – can also be promoted through specialized events, such as trade shows and conferences – but also through motivational programs. Volume-based discounts, performance bonuses or exclusive access to special promotions/events can make a significant difference in participant engagement.

4. Creating terms and conditions

   Creating clear and understandable rules and regulations is the foundation of a successful promotion. Specifying the rules of participation, conditions of winning, prizes and including all other relevant information encourages participation in the promotional action. A very important element is to make sure that the rules and regulations comply with legal regulations and are understandable to the average Smith. When organizing a lottery, the rules and regulations, along with a set of documents, must be approved by the director of the Tax Administration Office and submitted well in advance.

5. Appealing prizes

   Prizes must attract the attention of participants. Without this, there is no way to dream about the success of even the best-organized promotion. The prizes should therefore be attractive, preferably also related to the brand, product or service, and tailored to the profile of the target group. In promotional campaigns implemented by Interactive System, the most popular are cash prizes and fuel cards, which are easy to use, give freedom of choice and support the household budget.

6. Integration with loyalty program

   To carry out an additional promotion to support sales and/or to attract new participants, it is worth using the loyalty program[FZ1]. By integrating the promotion with an existing sales support program[FZ2], you can use the existing mechanism and award additional promotional points for participation in the promotion. These points can be exchanged for rewards from the loyalty program’s reward catalog. You can also use the available platform and run a promotion not directly related to the operation of the loyalty program and the rewards that are offered in it.

7. Effective marketing campaign and performance tracking

   A lottery, contest or bonus sale should be accompanied by an effective marketing campaign, using various communication channels. Website[FZ3], social media, emails, SMS – all of these should be used to reach as many customers as possible.
   It is also important to regularly track the results of the promotion, such as purchase data and the number of submissions. By analyzing customer engagement and the effectiveness of the campaign, it is possible to react in real time, make necessary modifications and adjust the strategy according to consumer behavior.

8. Simple way to participate

   One of the key elements is a simple and intuitive participation process. Minimizing the entry barrier to attract as many participants as possible increases engagement. Thus, it is worth to avoid complex forms that take the participant a long time to fulfill, as this simply discourages taking part in the promotion. At the initial stage of a contest or raffle, participants should not be required to provide a lot of data, such as an address, for instance. This is information that can be collected at the stage of selecting the winners.

9. Positive experience

   Positive experience is a power that should not be underestimated. Why? Because even those who do not win should be satisfied with just taking part in the competition. That’s why it’s important not to leave participants unanswered to the questions directed to the organizer of the promotional action – it’s worthwhile to respond to entries on an ongoing basis during and after a contest, lottery or bonus sale, because this creates in participants a sense of transparency in the contest, and thus translates into trust in the brand.

Simple only in theory…

Organizing a successful lottery, contest or bonus sale in a loyalty program is a process that requires diligence and flexibility. Understanding customer expectations, creativity in the selection of prizes, and continuous tracking and adjustment of strategies to current consumer behavior are key. All these elements seem simple in theory… nothing could be further from the truth! Experience counts here, so in order to – succeed in building sales, loyalty and trust in the brand through a lottery action, it is worth entrusting its organization to an experienced partner.

Wondering if this is the solution for you? Tell us what you’re up against – write to our expert, Przemysław Kończak – p.konczak@interactivesystems.pl.

References:

• I. Mościchowska, B. Rogoś-Turek, Badania jako podstawa projektowania User Experience, Wyd. PWN, Warszawa 2015
• Idź na rekord sprzedaży! Efektywne strategie i narzędzia akcji promocyjnych – Marketer Plus